Companies emerging from the worldwide recession are focusing on restructuring and the productive use of corporate real estate (CRE), according to the inaugural Global Corporate Real Estate Survey conducted by Jones Lang LaSalle (JLL) and Thomson Reuters.
The survey of over 500 CRE executives across the world and various industries is JLL’s first global effort to identify the future challenges facing the CRE industry and the expected consequences over the next three years.
“This survey gives us an unprecedented window into the mind of the CRE community, as well as the global business marketplace as a whole,” said John Forrest, CEO of Corporate Solutions, Asia Pacific at JLL.
“Corporations have clearly shifted from short-term, survival motivated tactics towards medium-term, strategic initiatives aimed at driving productivity enhancements.”
“Driving improved productivity by implementing more strategic real estate initiatives can release tremendous value given that real estate typically accounts for 7 to 12 percent of a corporation’s total operating costs,” said Mr. Forrest.
Of the total respondents, 97 percent said they supported their business with one or more tactical real estate plays in order to cut cost. About 35 percent said growth will be the most influential factor in shaping the real estate strategy in the next three years, while 11 percent cited cost pressures.
When asked about the top influences on future real estate strategies, 77 percent cited the need to attract talent, enhance productivity, right-size the portfolio for a new organisational reality, or a desire to change the culture and nature of work.
In addition, 39 percent of the respondents expect a growth in the total size of their global real estate portfolio over the next three years, while 31 percent anticipate a reduction.
The survey also showed that most CRE executives expect the strongest net growth in Asia Pacific, primarily in North Asia, South Asia and Southeast Asia.